Research on the Theory and Application of Operating Cost Management in Process Industry - 21st Century Financial and Economic Academic Library

Author: Cao Xiaoxue
Publisher:
Publish Date: 2006-08-01
Features: The main contents of this book are as follows:
(1) A comprehensive elaboration on the current status of research on activity-based costing (ABC) theory both domestically and internationally. By studying the quantity and content of articles related to ABC theory published in important accounting journals both domestically and internationally, the research progress of ABC theory since its inception is reviewed. The development trends of ABC theory research are summarized, and the existing problems in current ABC theory research are summarized. The imbalance in ABC theory research is pointed out, especially the disconnect between theoretical research and practical application research.
(2) Based on the production characteristics and management requirements of process industries, a step-by-step cost calculation model based on activity chains/networks is constructed. The key technologies required for ABC, such as activity classification, cost driver selection, and activity chain establishment, are elaborated. The principles of activity classification are determined, and the construction methods of activity chains/networks are explained. In the process of calculating costs for process industries using the comprehensive step-by-step costing method, both product costs and activity costs include comprehensive items. To reflect the original cost structure and facilitate cost analysis, it is necessary to reverse the activity costs and product costs. The methods for reversing activity costs and product costs are clarified, and the calculation formulas for cost reversal are provided.
(3) Activity-based costing in process industries reflects and supervises the formation process of various costs in enterprises in the form of vouchers, accounts, and reports. Since the cost accounting objects of ABC differ significantly from traditional cost accounting objects, the vouchers, accounts, and reports used in cost accounting differ greatly from those in traditional cost accounting. This book designs the vouchers, accounts, and reports required for activity-based costing in process industries, including the design of names, contents, and structures of vouchers, accounts, and reports.
(4) The study focuses on activity-based cost analysis and control based on the data provided by step-by-step activity-based costing. Cost analysis and control are important aspects of cost management. Based on the detailed cost information provided by ABC, such as resource costs, activity costs, product costs, and activity driver quantities, activity costs are analyzed in multiple dimensions, including analyzing the value-added and non-value-added nature of activities, analyzing cost drivers, analyzing activity and process efficiency, and conducting variance analysis on the actual execution of activity costs using activity-based cost planning.
(5) The study explores the decision-making theories and methods based on activity-based costing for process industries. Starting from the cost behavior analysis, which plays a crucial role in cost forecasting and decision-making, the differences between activity-based cost behavior analysis and traditional cost behavior analysis and break-even analysis are elaborated. Using differential analysis methods and linear programming theory, combined with cost information provided by ABC and activity-based cost behavior analysis, an optimization decision-making model for activity chain length in process industries is established.
(6) Taking the typical process industry company DLSH as an example, the theories proposed in this book are validated. Based on DLSH's production process, activities and activity centers are classified, an activity chain network is established, product costs and activity costs are calculated using the step-by-step ABC method, cost reversal for activity costs and product costs is performed, and the variance between actual costs and planned costs is analyzed.